Which of the following functions don’t have unit elasticity at P = 6? a. Demand: Qd...

Which of the following functions don’t have unit elasticity at P = 6?

	a.	Demand: Q_d = 24 - 2 P
	b.	Demand: Q_d = 10/P
	c.	Demand: log Q_d = 100 - 3 log P
	d.	Supply: Q_s = 5 P

For the function Q = AK^αL^β which of the following statements are not true?

	a.	Marginal Product of Capital (MPK) = αQ / K
	b.	Marginal Product of Labour (MPL) = AαK^α-1L^β
	c.	Marginal rate of substitution of capital for labour (MRS) = \|dK / dL\|
	d.	δQ/δL = AβK^αL^β-1

For the demand function Q₁ = 10 - 8 P₁ + P₂ + 0.01Y which of the following statements are true?

	a.	δQ₁ / δP₁ = -8 + P₂ + 0.01Y
	b.	dQ₁ / δY = 0.01
	c.	δQ₁ / δP₂ = P₂
	d.	δQ₁ / δP₁ = 8

For the following total cost function, find marginal cost (MC), average total cost (ATC) and average variable cost (AVC) and then decide which of the following are true. TC = 0.1Q³ - 4Q² + 80Q + 150 doesn’t implies

	a.	MC = 0.3Q² - 8Q + 80
	b.	ATC = 0.1Q² - 4Q + 80
	c.	AVC = 0.1Q² - 4Q + 80
	d.	MC=AVC at Q=20

Solutions

Expert Solution

Rahul Sunny answered 1 year ago

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